G41 Food Retailing

Aldi sees plenty of growth to come

roymorgansocial Leave a comment

Original article by Eli Greenblat
The Australian – Page: 19 & 20 : 2-Nov-16

The Australian market share of German supermarket chain Aldi is currently less than 10 per cent, although local CEO Tom Daunt believes that the group can lift this to 14-15 per cent within the next several years. He also concedes that growth in store numbers across the eastern states will slow in coming years. Daunt stresses that Aldi will maintain its policy of having the lowest grocery prices, while the group intends to refurbish all of its existing east coast stores in order to be competitive in the fresh food segment of the grocery market.

CORPORATES
ALDI STORES SUPERMARKETS PTY LTD, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW

Woolies chief sees green shoots

roymorgansocial Leave a comment

Original article by Eli Greenblat
The Australian – Page: 19 & 23 : 26-Aug-16

Australian-listed retailer Woolworths has posted a 2015-16 net loss of $A1.23bn, while revenue was down 1.2 per cent at $A58.08bn. The result was marred by write-downs and impairment charges exceeding $A4bn. CEO Brad Banducci says further reducing grocery prices will continue to be a priority in 2016-17. He adds that there was 0.3 per cent growth in like-for-like store sales during the first eight weeks of the financial year. Shareholders will receive a final dividend of $A0.33 per share.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, COLES SUPERMARKETS AUSTRALIA PTY LTD, ALDI STORES SUPERMARKETS PTY LTD, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, BIG W DISCOUNT STORES, ENDEAVOUR DRINKS GROUP, DAN MURPHY’S, AUSTRALIAN LEISURE AND HOSPITALITY GROUP LIMITED

Woolworths tries third rejig of loyalty scheme

roymorgansocial Leave a comment

Original article by Sue Mitchell
The Australian Financial Review – Page: 3 : 23-Aug-16

Australian-listed retailer Woolworths has again changed its customer loyalty scheme. This is the third modification of the scheme in 10 months. The company decided to reintroduce Qantas Frequent Flyer points in order to make the system more attractive to AB-demographic shoppers, who switched to other supermarkets when these points were removed from the scheme in 2015. Analysts have welcomed the changes to the scheme.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, BWS – BEER WINE SPIRITS, CALTEX AUSTRALIA LIMITED – ASX CTX, AUSTRALIAN CENTRE FOR RETAIL STUDIES, BIG W DISCOUNT STORES, QANTAS AIRWAYS LIMITED – ASX QAN

Coles prepares to milk consumer taste for branded dairy products

roymorgansocial Leave a comment

Original article by Sue Mitchell
The Australian Financial Review – Page: 13 : 9-Aug-16

Coles will launch a new milk brand in the third week of August 2016. The new product will be priced higher than the supermarket chain’s private label milk, which costs $A1.00 per litre. Coles intends to divert $A0.20 a litre from sales of the new product to a hardship and innovation fund. Victorian dairy farmers, who are supposed to be the beneficiaries of the Farmers Fund, see the initiative as a marketing stunt. They say they would prefer being paid more for milk.

CORPORATES
COLES SUPERMARKETS AUSTRALIA PTY LTD, MURRAY GOULBURN CO-OPERATIVE COMPANY LIMITED, WOOLWORTHS LIMITED – ASX WOW, FARMERS FUND, FARMERS OWN, NURTURE FUND, AUSTRALIAN DAIRY FARMERS’ LIMITED, DAIRY AUSTRALIA, VICTORIAN FARMERS FEDERATION

New Woolies CEO shuts store doors on growth strategy

roymorgansocial Leave a comment

Original article by Sue Mitchell
The Australian Financial Review – Page: 1 & 16 : 26-Jul-16

Shares in Woolworths closed 8.2 per cent higher at $A24.30 on 25 July 2016, after the retail giant unveiled a restructuring program. Woolworths’ financial results for fiscal 2016 will be hit by restructuring costs in excess of $A4bn, while its EBIT will fall sharply. The turnaround strategy includes the closure of underperforming stores, the retrenchment of 500 employees at its head office and the sale of EziBuy. CEO Brad Banducci says Woolworths could also consider further asset sales in the future in order to retain its investment grade credit rating.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, EZIBUY, BIG W DISCOUNT STORES, AUSTRALIAN LEISURE AND HOSPITALITY GROUP LIMITED, THE QUANTIUM GROUP PTY LTD, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, HOME TIMBER AND HARDWARE, CREDIT SUISSE (AUSTRALIA) LIMITED, PERPETUAL INVESTMENTS

Living next door to Aldi

roymorgansocial Leave a comment

Original article by Catie Low
The Australian Financial Review – Page: 19 & 24 : 2-Jun-16

Tom Kierath of Morgan Stanley expects grocery retailer Aldi to achieve strong growth in Australian market share in coming years, as the Germany-based group expands its store network. Tasman Market Fresh Meats is among the independent food retailers that have benefited from having stores located near an Aldi outlet, as consumers often do top-up shops after doing their main grocery shop at Aldi.

CORPORATES
ALDI STORES SUPERMARKETS PTY LTD. TASMAN MARKET FRESH MEATS PTY LTD. RITCHIES STORES PTY LTD. MORGAN STANLEY AUSTRALIA LIMITED. IGA. UBS HOLDINGS PTY LTD. LIDL GMBH & CO KG. COLES SUPERMARKETS AUSTRALIA PTY LTD

7-Eleven dumps independent back-pay panel

roymorgansocial Leave a comment

Original article by Adele Ferguson, Sarah Danckert
The Age – Page: 3 : 12-May-16

Allan Fels is concerned that employees who were underpaid by 7-Eleven may not be fully compensated after the convenience store chain moved to disband the independent panel that was established to assess compensation claims. Fels and fellow panel member David Cousins have been advised that 7-Eleven will now handle compensation claims in-house. Fels says the move is aimed at minimising the amount of compensation 7-Eleven must pay.

CORPORATES
7-ELEVEN STORES PTY LTD, DELOITTE TOUCHE TOHMATSU LIMITED, FAIRFAX MEDIA LIMITED – ASX FXJ, AUSTRALIAN BROADCASTING CORPORATION, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Woolies hit by ratings downgrade

roymorgansocial Leave a comment

Original article by Sue Mitchell
The Australian Financial Review – Page: 23 & 32 : 5-May-16

Standard & Poor’s has reduced the long-term credit rating of Woolworths from "BBB+" to " BBB". S&P had previously downgraded the Australian retail giant’s credit rating in August 2015. Rival ratings agency Moody’s will also review its "Baa2" rating on the stock, having downgraded it from "Baa1" in March 2016. The bearish sentiment follows Woolworths’ disappointing financial results for the March quarter. Analysts in turn have reduced their earnings forecasts for 2016 and 2017.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, STANDARD AND POOR’S CORPORATION, MOODY’S INVESTORS SERVICE INCORPORATED, DEUTSCHE BANK AG, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, UBS HOLDINGS PTY LTD, JP MORGAN AUSTRALIA LIMITED, BIG W DISCOUNT STORES, ALDI STORES SUPERMARKETS PTY LTD, COLES SUPERMARKETS AUSTRALIA PTY LTD

7-Eleven still rorting workers, says CEO

roymorgansocial Leave a comment

Original article by Mathew Dunckley
The Australian Financial Review – Page: 18 : 21-Mar-16

Former Skilled Group boss Angus McKay says addressing problems with 7-Eleven’s corporate culture will be one of his priorities as the convenience store chain’s new CEO. McKay has conceded that wage exploitation is most likely still an issue at some stores, but he has committed to completely eliminating such practices. He also concedes that the wages scandal has tarnished 7-Eleven’s reputation among consumers.

CORPORATES
7-ELEVEN STORES PTY LTD, SKILLED GROUP LIMITED, FAIRFAX MEDIA LIMITED – ASX FXJ, AUSTRALIAN BROADCASTING CORPORATION, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, FOSTER’S GROUP LIMITED, DIAGEO AUSTRALIA LIMITED

Inside the blast zone: Foodland puts out the welcome mat for Aldi

roymorgansocial Leave a comment

Original article by Simon Evans
The Australian Financial Review – Page: 17 : 2-Mar-16

Discount supermarket chain Aldi opened its first Adelaide stores in early 2016, and it will open another five during March. Foodland has been "extremely aggressive" in defending its market share in areas where Aldi has opened a store, according to CEO Con Sciacca. South Australia-based Foodland argues that it has more scope to reduce grocery prices at individual stores than national rivals Woolworths and Coles. Foodland’s market share in the state is just below that of Coles and Woolworths.

CORPORATES
FOODLAND AUSTRALIA LIMITED, ALDI STORES SUPERMARKETS PTY LTD, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, METCASH LIMITED – ASX MTS, MORGAN STANLEY AUSTRALIA LIMITED, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD